I know there is a recent thread about 401(k)'s in the Lounge but it turned into a pissing match and my question is of a different variety.

I was laid off recently and have the option to leave my 401(k) where it is or roll it over. If I roll it over, it will basically be like cash when rolling into a new fund, correct?

I have about $20k in the account currently, but have contributed much more but "lost" money due to the current market. Is it better to cut my losses and reinvest, or try to recoup and let the shares sit how they are?

3/11/2009 2:47:51 PM

It really does depend. I rolled mine over, but it only b/c the company that I left was not doing well and unless management changed, the forecast did not look good.

3/11/2009 2:55:20 PM

I agree with Seotaji, it really depends on how your options have weathered thus far. In my case, I decided to not roll-over after speaking with my Fidelity rep, because I would lose my solid options that got me to the point I'm at now.

3/11/2009 3:16:46 PM

Quote :

"I agree with Seotaji, it really depends on how your options have weathered thus far. In my case, I decided to not roll-over after speaking with my Fidelity rep, because I would lose my solid options that got me to the point I'm at now."

I wanted to do that with my 401k after I lost my job last fall. But for some reason unknown to me, my former bosses are switching their 401k provider. So now I'm forced to sell and start from scratch after losing 50% of my value over the past year (I'm in an extremely aggressive mix of funds) or rollover into an outside account. Of course, I decided to take my money and run for a rollover than I can control. It still pisses me off, though. /rant

3/12/2009 11:00:35 AM

Roll it over. More flexibility and then the option to convert to a roth if you desire.

http://thewolfweb.com/message_topic.aspx?topic=559198

3/13/2009 3:41:21 PM